4 Money Leaks You Should Plug in Your Finances
Why take two steps forward if afterwards you're just going to take three steps back? That old phrase is good life advice – and it's also good money advice. So often we get caught up in the hustle and bustle of life that we don't stay on top of our finances. Keep on top of your daily money dealings to ensure you're not wasting money or setting bad habits.
Follow these money tips to make sure you're taking full advantage of your personal financial situation, and not losing out to money leaks:
Avoid paying bank fees
I hate overpaying for anything, especially for something I don't need to pay for. Check your bank accounts regularly to ensure you're not being charged unnecessary fees. It's also a good idea to read the fine print before opening a bank account.
You should know if you need to maintain a minimum balance to have the monthly fee waived and be aware of the potential fees for using the ATM. There is nothing worse than being charged $4 (or more) to take out $20 from another bank's ATM.
Don't let savings sit at a low interest rate
If you deposited money into a chequing account and the balance isn't growing, talk with a financial advisor because you may need a financial review. If you need to keep cash on hand in case of an emergency consider alternative options to a regular chequing account such as money market fund, a cashable guaranteed investment certificate or a high interest savings account. This will help you earn more interest than letting the money accumulate in a chequing account. Inflation is the most silent of money leaks.
Turn off everything when you leave a room
Buying a home can be expense so it's important to do everything you can to save money. If you don't want to waste money, don't pay for things you don't use. It's very easy to leave the water running while we brush our teeth and leave the lights on after we leave the room because "we'll be right back", but the truth is that's a waste of money.
To avoid big utility and hydro bills at the end of the month, keep heat at a reasonable temperature during the winter, open windows instead of using the air conditioning in the summer, avoid lingering in long hot showers, and turn off the lights as you leave the room. These bad habits are all money leaks that could be draining your finances.
Bundle your insurance products to save
It's not a secret that having multiple products with one service provider can lead to big savings. Just as you bundle your cable, internet and home phone service with Bell or Rogers to save money, you can do the same with your insurance products.
Contact your insurance provider and ask for discounts if you purchase your home, life and auto insurance with the same company. You may be surprised at how much money you can save.
If you want to compare insurance prices use our easy online tools to get several quotes in just a few minutes.